Article

 

Industry level Technology Gaps and Complementary Knowledge Stocks as Determinants of intra-MNC Knowledge Flows (p.135-156)

by

Jindra Björn, Halle Institute for Economic Research Halle (IWH) (Germany)

Klugert Ingmar, Viadrina University (Frankfurt/Oder, Germany)

Stephan Johannes, Halle Institute for Economic Research Halle (IWH) (Germany)

Keywords : multinational corporations, foreign direct investment, technology transfer, productivity gap, absorptive capacity

JEL classification : F23, D83, O33

Abstract

Pursuing a subsidiary level analysis, we this paper tests the ‘technology gap’ hypothesis in the context of intra-MNC knowledge flows. Furthermore, it introduces complementary knowledge stocks into the concept of absorptive capacity. A set of hypotheses is tested in a sample of 434 foreign subsidiaries based in Central and East Europe. We find partial support for the ‘technology gap’ hypothesis applied at industry level. Furthermore, subsidiaries’ complementary knowledge stocks increase the probability for corresponding knowledge inflows from the foreign parent.